![KEDIPES announces sale of €58.4 million loan portfolio to the Bank of Cyprus](/storage/cache/610x345/6766c79311255.jpg)
State-owned Cyprus Asset Management Company Ltd (KEDIPES) announced the signing of an agreement with Bank of Cyprus Public Company Limited for the sale of a portfolio of serviced and updated restructured loans with a total gross accounting value amounting to €58.4 million, as of December 31, 2022.
According to a KEDIPES press release, the transaction is not expected to have significant implications on the company’s financial results.
KEDIPES points out that this deal aligns with its strategic implementation, which includes loan portfolio sales as a significant tool for deleveraging its managed portfolio and maximizing the repayment of the state aid provided by the Republic of Cyprus to the Co-operative Central Bank in 2018 as soon as possible.
It is noted that to date, KEDIPES has disbursed a total amount of €1.16 billion to the Republic of Cyprus in repayment of the state aid it has provided.
The completion of the transaction is anticipated within the first quarter of 2024 and is subject to obtaining relevant regulatory approvals.
It is also noted that the involved borrowers, guarantors, and insurance providers have been notified of the intention to sell the loans included in the above Agreement through letters sent to them.
On its part Bank of Cyprus issued a similar press release, stating that "the transaction supports the bank’s strategy to grow its performing loan book in the medium term."